|

20% of Bitcoin's daily trading volume generated by a single project

  • VeriBlock piggybacks Bitcoin Network to solve altcoins security features.
  • The consequences of these developments are not clear yet.

According to the recent research published by Forbes Crypto, about 20% of all Bitcoin transactions are generated by a project called VeriBlock. It is developed on top of Bitcoin blockchain with the aim to provide a more secure alternative to existing cryptocurrency networks.

VeriBlock is based on proof-of-proof (PoP) concept that functions as a supplemental consensus mechanism for blockchains integrated with VeriBlock. 

Basically, it allows minor altcoin projects to avoid security issues related to low hash rate and relatively low reward for mining. Low hash rate may lead double spend issues and 51% attack - something that is happening with Ethereum Classic now. 

VeriBlock claims to improve the security of altcoins by embedding their ledgers into Bitcoin blockchain and allowing them to piggyback on the massive hash rate of the Bitcoin network. 

While the idea of making altcoins safer might look appealing, one would remember that it is done at the expense of Bitcoin users. VeriBlock operations overload the network and make Bitcoin transfers more expensive. Considering that Bitcoin is a permissionless system where anyone who is willing to pay can get their transactions into the blockchain, no one can stop VeriBlock from doing what they are doing. 

The actual consequences of this activity are not clear at this stage, though the viability of the project and its effect on the Bitcoin network is worth tracking in months to come. 
 

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

More from Tanya Abrosimova
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Ripple faces persistent bear risks, shrugging off ETF inflows

Ripple is extending its decline for the second consecutive day, trading at $2.06 at the time of writing on Friday. Sentiment surrounding the cross-border remittance token continues to lag despite steady inflows into XRP spot ETFs. 

Luna Classic soars 20% as Do Kwon's sentence hearing looms

Luna Classic surges 20% on Friday, extending its recovery for the fourth consecutive day. Roughly 959 million tokens have been burned in December so far, fueling LUNC's recovery.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000. 

Ethereum strengthens against BTC post-Fusaka, targeting $3,200 breakout

Ethereum trades above $3,100 on Friday, with bulls aiming for a breakout above a two-month-old resistance trendline. Ethereum gains strength against Bitcoin as demand for the major altcoin increases after the Fusaka upgrade.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000.